SMALL BUSINESS

Small businesses are privately owned corporations, partnerships, or sole proprietorships that have
fewer employees and/or less annual revenue than a regular-sized business or corporation.
Businesses are defined as "small" in terms of being able to apply for government support and qualify
for preferential tax policy varies depending on the country and industry. Small businesses range from
fifteen employees under the Australian Fair Work Act 2009, fifty employees according to the definition
used by the European Union, and fewer than five hundred employees to qualify for many U.S. Small
Business Administration programs. While small businesses can also be classified according to other
methods, such as annual revenues, shipments, sales, assets, or by annual gross or net revenue or
net profits, the number of employees is one of the most widely used measures.
Small businesses in many countries include service or retail operations such as convenience
stores,small grocerystores, bakeries or delicatessens, hairdressers or tradespeople (e.g., carpenters,
Electricians etc.), restaurants, guest houses, photographers, very small-scale manufacturing, and
Internet-related businesses such as web design and computer programming. Some professionals
operate as small businesses, such as lawyers, accountants, dentists and medical doctors (although
these professionals can also work for large organizations or companies). Small businesses vary a
great deal in terms of size, revenues and regulatory authorization, both within a country and from
country to country. Some small businesses, such as a home accounting business, may only require a
business license. On the other hand, other small businesses, such as day cares, retirement
homes and restaurants serving liquor are more heavily regulated, and may require inspection and
certification from various government authorities.
The industries in INDIA which are organised in a small scale and produced goods with help of
machines, hired labours and power are considered as small scale industries.

Small scale Industry may sound small, but actually plays vital role in overall growth of economy.

These industries are specialised in production of consumer commodities. Small scale industries plays
crucial role in developing countries having of shortage of capital and abundant labour.

After Independence planners recognised importance of this sector. So strategic position is allotted to
small industries in country’s industrial policy.